Using your home’s equity to plan for next year

December is a great time for giving with all of the holiday festivities and shopping deals going on. But it’s also the perfect time to consider your goals and finances for the following year.

“With the start of the new year, often comes new resolutions and projects for homeowners to tackle,” said Derek Wong, senior vice president of credit products at First Hawaiian Bank. “A home equity line of credit (HELOC) provides homeowners convenient access to funds to help achieve those new resolutions as well as other year-round projects and to-do list items.”

Wong mentioned that typical projects that may require HELOC financing include a kitchen remodel, new appliances, or building an addition to the house for extended family or children moving back home after college. HELOCs are also often used to pay private school or college tuition payments, or to consolidate other higher-interest debt.

But, no matter what your purpose, consider the benefits of a HELOC over other loan options:

Better rates

Interest rates are typically lower than unsecured loans and credit cards because you are using your home as collateral. Lower rates typically mean lower, more manageable monthly payments.

Purchasing power

Generally, HELOCs are approved for larger amounts than unsecured financing. This provides the borrower with greater fl exibility to pay for big-ticket items, large projects and many other uses.

Convenience

You can easily draw funds from your HELOC by making a transfer to your checking account. Also, you can make payments simply by transferring funds from a checking account.

Tax deductibility

In most cases, the interest paid on a HELOC is tax-deductible. Each situation is unique, so borrowers are encouraged to consult their tax advisor.

“There are a variety of home equity products that may help homeowners to map out a sound financial plan,” said Wong. “A personal banker at First Hawaiian Bank can help you to review your finances, address any credit issues, and show you solutions to achieve your goals. Sometimes just getting started is the toughest step to becoming financially fit.”

If planning your finances and checking off your milestones are at the top of your list for 2018, visit any First Hawaiian Bank branch and speak to a personal banker today.